Markets still haven't pushed on since recovering from the loses in early July.  Where we had the Russell 2000 struggling, now we have the Nasdaq looking weak.  The S&P also took a little knock after a positive Thursday. In reality, we are probably looking at trading ranges and not any imminent collapse, and with (Covid curtailed) holidays in full swing it's hard to see where the demand buying is going to come from. At least with the Nasdaq there was support of the 20-day MA to lean on, although it didn't offer much support earlier in the month. The MACD is still on a 'sell' trigger as other technicals stayed positive.

The Russell 2000 was one of the better performing indices on the day, but it didn't change the larger picture of an index caught in a trading range.  Today's gain was enough to see a new 'buy' trigger in the MACD as it closed on its 20-day MA.  However, until it makes its way back to trading range resistance it's hard to be optimistic - or pessimistic - as to its potential outcome.  Near term traders could trade from here for a move to channel resistance, but the whipsaw risk is high because of the trading range.

The weekend didn't deliver any change on Friday's position, the Russell 2000 couldn't follow the lead of the S&P and Nasdaq, instead posting yet another neutral doji. Buyer indecision for growth stocks remains a concern as the trading range remains no closer to been breached.

The indices which have done most of the leg work through 2021 were again grabbing the headlines on Friday, but the Russell 2000 was not an index joining in the fun.  Both the Nasdaq and S&P managed new closing highs, both of these indices having successfully defended breakout support in addition to Fiboacci retracements, but really - it's the Russell 2000 we need to see strength from. The Nasdaq managed a solid test of breakout support despite the MACD trigger 'sell', although On-Balance-Volume, ADX and Stochastics are bullish, the latter indicator has been firmly on the bull's side. 

Monday's confluence of support tests was going to bring a reaction and a reaction it did. Today marked the second day of buying, but volume for today was down on yesterday and indices will soon find themselves testing the resolve of buyers of the July high - will supply / sellers return? For the Nasdaq, today's buying was sufficient to regain its 20-day MA with new 'buy' triggers for On-Balance-Volume and ADX. 

Small Caps have reaches a support level which will determine how things will go for the rest of the year. In the case of the Russell 2000 ($IWM) we have to consider what will happen around $209 as sellers confirm distribution; a loss of this level will end the trading range and project a measured move down and through the 200-day MA. 

There was to be no reprieve for buyers on Friday. In the past, buyers have managed to step in to provide a bit of gloss on a bad week to give bulls some optimism for Monday, but there was no such reprieve today. But as I was saying about strong days in a trading range - the same applies for weak days too.  The Russell 2000 gave up over 1% in a move which undid Thursday's neutral doji, but with this occurring inside the trading range it's damage is not as significant.  The 200-day MA is fast approaching, so this might be the next test.